Conch Venture’s 2025 Net Profit Rises 11.17%, Margin Strengthens; Final Dividend HK$0.30 Proposed

Bulletin Express
Mar 25

China Conch Venture Holdings Limited reported solid FY2025 results, with earnings driven by stable waste-to-energy operations and stronger contributions from associates.

Revenue and Profitability • Group revenue increased 4.42% year-on-year to RMB6.55 billion, supported by growth in new-energy sales and higher waste-to-energy operating income. • Gross profit rose 4.44% to RMB2.27 billion; overall gross margin edged up to 34.70% (2024: 34.69%). • Net profit attributable to equity shareholders reached RMB2.25 billion, up 11.17%. Excluding associate contributions, core net profit grew 2.95% to RMB724.24 million. • Share of profits from 49%-owned associate Conch Holdings climbed 15.57% to RMB1.52 billion, representing 62% of pre-tax profit. • Basic EPS improved to RMB1.32 (2024: RMB1.17).

Dividend The Board proposes a final cash dividend of HK$0.30 per share, bringing full-year distributions to HK$0.40 per share—flat versus 2024 (which included a HK$0.10 special dividend). Payment is slated for 24 July 2026, subject to shareholder approval at the 25 June 2026 AGM.

Segment Performance • Waste-to-energy revenue slipped 3.68% to RMB4.70 billion as construction activity moderated, but operating income within the segment grew 7.45% on higher waste intake, on-grid electricity and steam sales. Segment margin widened 5.59 ppts to 43.22%. • Energy-saving equipment sales fell 39.30% to RMB496.44 million amid fewer orders; margin held at 25.85%. • New energy business—mainly lithium iron phosphate materials and battery recycling—scaled rapidly, with revenue surging 277.36% to RMB1.09 billion. Margin narrowed to 1.23% due to rising raw-material costs and market competition. • New building materials revenue decreased 11.17% to RMB90.66 million but margin recovered to 7.45% following cost controls and inventory provision reversals. • Port logistics revenue declined 7.62% to RMB168.45 million on pricing pressure; margin softened to 55.00%.

Balance Sheet and Cash Flow • Total assets stood at RMB84.28 billion, up 2.38% year-on-year; equity attributable to shareholders reached RMB49.40 billion. • Gearing ratio (total liabilities/total assets) improved to 39.64% (-0.63 ppt). • Cash and cash equivalents amounted to RMB2.07 billion at year-end. • Operating cash inflow was RMB1.84 billion, down 9% due to higher working capital needs; capital expenditure moderation cut investing outflows to RMB1.30 billion from RMB2.43 billion. • Net debt fell after repayment of bank borrowings; the company also issued RMB1.30 billion of five-year green medium-term notes at a 1.93% coupon in January 2025 and, post year-end, placed a further RMB1.24 billion at 1.90%.

Operational Highlights • Conch Venture operates 88 grate-furnace waste-to-energy plants, two standalone kitchen-waste projects and seven cement-kiln co-processing lines, with aggregate municipal-solid-waste capacity of 18.36 million tonnes per year in operation. • Waste intake reached 19.35 million tonnes (+3%); on-grid power output climbed 6% to 5.42 billion kWh; steam sales nearly doubled to 0.70 million tonnes. • The company is developing 40 additional projects spanning waste-to-energy, lithium battery recycling, new-energy materials and port logistics.

Capital Commitments and Outlook • Outstanding capital commitments total RMB789.50 million, primarily for waste-to-energy and new-energy projects. • Management will continue to prioritise “optimising capacity, improving operations and enhancing profitability” while expanding new-energy and recycling businesses and maintaining prudent financial discipline.

Shareholder Dates • Register of members closes 18–25 June 2026 for AGM eligibility; 6–10 July 2026 for dividend entitlement.

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